Art Gallery of Western Australia Foundation · Annual Financial Statements 2014-15 Art Gallery of Western Australia Foundation. 2 ... are a special purpose financial report that has

Annual Financial Statements2014-15

Art Gallery of Western Australia Foundation

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Contents Council Members' Declaration 3

Financial Statements Statement of Financial Position 4 Statement of Comprehensive Income 6 Statement of Changes in Equity 10 Statement of Cash Flow 11 Notes to and forming part of the Accounts 13

The Art Gallery of Western Australia Foundation is a body corporate created under the Art Gallery Act 1959. A special purpose account called The Account of the Art Gallery of Western Australia Foundation is established under section 16 of the Financial Management Act 2006 to which all monies received by the Foundation are credited and all expenditure incurred by the Foundation is charged. The objects of the Foundation, as prescribed by the Art Gallery Act 1959, are contained in Note 1 to the Accounts on page 16.

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Council Members’ Declaration The financial statements of the Art Gallery of Western Australia Foundation are a special purpose financial report that has been prepared for distribution to members. As stated in Note 2(a) to the financial statements, in the Council Members’ opinion, the Art Gallery of Western Australia Foundation is not a reporting entity because there are no users dependent on general purpose financial reports. Foundation transactions and balances are included in the Art Gallery of Western Australia’s financial statements and are separately disclosed as a Special Purpose Account. These financial statements are audited annually by the Office of the Auditor General. The audit for the financial statements of the Art Gallery of Western Australia for the year ended 30 June 2015 has not been formally completed but a draft audit opinion has been received that states that the financial statements are based on proper accounts and present fairly. The final audit opinion will be included in the Art Gallery of Western Australia’s Annual Report which will be published on the Art Gallery website at the end of November. The Council members declare that the financial statements and notes present fairly, in accordance with the accounting policies described in Note 2 to the financial statements, the Foundation’s financial position as at 30 June 2015 and its performance for the financial year ended on that date. In the Council members’ opinion there are reasonable grounds to believe that the Foundation will be able to pay its debts as and when they become due and payable. Adrian Fini Chair of the Council of the Art Gallery of Western Australia Foundation 5 November 2015

Art Gallery of Western Australia Foundation

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2015 2014$ $

C A P I TA L F U N D S

The Acquisition FundMembership pledges 7,052,180 6,946,979 Accumulated other net expenses ( 3,671,186) ( 3,666,666)

Total Acquisition fund 3,380,994 3,280,313

The Tomorrow FundMembership pledges 6,747,203 6,480,973 State Government contribution 12,500,000 12,500,000 Accumulated other net expenses 903,448 2,042,426

Total Tomorrow Fund 20,150,651 21,023,399

The Historical FundMembership pledges 745,200 745,200 Accumulated other net expenses ( 745,200) ( 745,200)

Total Historical fund - -

The Living Centre FundMembership pledges 1,008,245 1,008,245 Accumulated other net expenses ( 842,217) ( 846,669)

Total Living Centre Fund 166,028 161,576

Contemporary Art GroupMembership pledges 367,227 340,227Accumulated other net expenses ( 313,931) ( 299,657)

Total Contemporary Art Group 53,296 40,570

Foundation BequestsBequests received 2,069,866 2,069,866 Accumulated other net expenses ( 330,945) ( 419,232)

Total Foundation Bequests 1,738,921 1,650,634

Exhibition FundMember contributions 25,000 - Accumulated other net expenses ( 171) -

Total Exhibition Fund 24,829 -

Total Foundation Capital Fund 25,514,719 26,156,492

The Art Gallery of Western Australia Foundation Statement of Financial Position as at 30 June 2015

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Statement of Financial Position as at 30 June 2015 – continued

Represented by:

CURRENT ASSETS

2015$

2014$

Cash on depositThe Acquisition Fund 3,590,124 3,418,459 The Tomorrow Fund 18,847,917 18,553,535 The Historical Fund - - The Living Centre Fund 165,009 160,432 Contemporary Art Group 52,968 40,282 Foundation Bequests 1,728,245 1,638,945 Exhibition Fund 24,676 -

Accrued interestThe Acquisition Fund 22,362 23,231 The Tomorrow Fund 116,241 133,487 The Historical Fund - - The Living Centre Fund 1,019 1,144 Contemporary Art Group 328 287 Foundation Bequests 10,677 11,690 Exhibition Fund 153 -

Total current assets 24,559,719 23,981,492

Quoted investments 955,000 2,175,000

Total non current assets 955,000 2,175,000

TOTAL ASSETS 25,514,719 26,156,492

The Balance Sheet should be read in conjunction with the accompanying notes.

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The Art Gallery of Western Australia Foundation Statement of Comprehensive Income for the year ended 30 June 2015

2015 2014$ $

T H E A CQ U I S I T I O N F U N D

RevenueMembership pledges received 105,201 126,659Interest on investment 90,366 90,594 Special viewings, functions and trip deposits 39,783 21,658

Total revenue 235,350 238,911

ExpenditureSalaries and wages costs 99,579 98,864 Printing and publications costs 661 809 Special viewings and functions 13,571 9,705 Office costs 20,038 6,188 Others 785 564 Contributions to the Art Gallery - 15,620 Artwork expenses 35 3,297

Total expenditure 134,669 135,047

Operating result 100,681 103,864

Opening balance of fund 3,280,313 3,176,449

Closing balance of fund 3,380,994 3,280,313

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Statement of Comprehensive Income for the year ended 30 June 2015 – continued

T H E TO M O R R O W F U N D

RevenueMembership pledges received 266,230 993,873Interest on investment 524,040 523,053 Dividends on investment 65,000 100,000 Special viewings and functions - -

Total revenue 855,270 1,616,926

ExpenditureOffice costs 2,001 9,544 Others 55 - Contributions to the Art Gallery 463,452 503,927 Artwork expenses 42,510 138,072 Change in share price 1,220,000 ( 655,000)

Total expenditure 1,728,018 ( 3,457)

Operating result ( 872,748) 1,620,383



T H E L I V I N G C E N T R E F U N D

RevenueInterest on investment 4,452 4,479


Operating result 4,452 4,479

Opening balance of fund 161,576 157,097

Closing balance of fund 166,028 161,576

2015 2014$ $

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CO N T E M P O R A RY A R T G R O U P

2015$

2014$

RevenueMembership pledges received 27,000 27,000Interest on investment 1,216 1,464


ExpenditureSpecial viewings and functions 75 -

Office costs 1,488 4,179

Contributions to the Art Gallery 12,000 34,818 Artwork Expenses 1,927 -


Operating result 12,726 ( 10,533)

Opening balance of fund 40,570 51,103

Closing balance of fund 53,296 40,570 -

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FO U N D AT I O N B E Q U E S T S

2015$

2014$

Revenue

Bequests received 187,505 - Interest on investment 45,853 48,362


Expenditure

Office costs 1,948 8,683Contributions to the Art Gallery 137,992 173,155 Artwork Expenses 5,131 -


Operating result 88,287 ( 133,476)



E X H I B I T I O N F U N D

Revenue

Member contributions 25,000 - Interest on investment 318 -

Total revenue 25,318 -

Expenditure

Special viewings and functions 489 - Total expenditure 489 -

Operating result 24,829 -

Opening balance of fund - -

Closing balance of fund 24,829 -

Closing balance of capital funds 25,514,719 26,156,492

The Statement of Income and Expenditure should be read in conjunction with the accompanying notes.

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2015 2014 $ $

Balance of equity at start of period 26,156,490 24,571,773

Surplus/(deficit) for the period:The Acquisition Fund 100,683 103,866 The Tomorrow Fund ( 872,748) 1,620,383 The Historical Fund - - The Living Centre Fund 4,452 4,479 Contemporary Art Group 12,726 ( 10,533)Foundation Bequests 88,287 ( 133,476)

Exhibition Fund 24,829 - Total surplus for the period ( 641,771) 1,584,719

Balance of equity at end of period 25,514,719 26,156,492

The Statement of Changes in Equity should be read in conjunction with the accompanying notes.

The Art Gallery of Western Australia Foundation Statement of Changes in Equity for the year ended 30 June 2015

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2015 2014$ $

C A S H F L O W S F R O M O P E R AT I N G A C T I V I T I E S

The Acquisition FundMembership contributions 105,201 126,659 Special viewings and functions 39,783 21,658 Expenditure ( 134,669) ( 119,427)Payment to Art Gallery - ( 15,620)

The Tomorrow Fund Membership contributions 266,230 993,873 Special viewings and functions - - Expenditure ( 508,018) ( 651,543)

The Historical FundMembership contributions - - Payment to Art Gallery - -

The Living Centre FundExpenditure - -

Contemporary Art GroupMembership contributions 27,000 27,000Expenditure ( 3,490) ( 4,178)Payment to Art Gallery - ( 22,818)Tom Malone Prize (12,000) ( 12,000)

The Art Gallery of Western Australia Foundation Statement of Cash Flows for the year ended 30 June 2015

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Statement of Cash Flows for the year ended 30 June 2015 – continued

Foundation BequestsBequests received 187,505 Expenditure ( 7,079) ( 8,682)Payment to Art Gallery ( 137,992) ( 173,155)

Exhibition Fund Member contributions 25,000 Expenditure - - Payment to Art Gallery ( 489) -

Net cash (used in) / provided by operating activities ( 153,018) 161,767

C A S H F L O W S F R O M I N V E S T I N G A C T I V I T I E S

Interest on investment 685,307 672,596 Dividends on investment 65,000 100,000

Net cash provided by investing activities 750,307 772,596

Net increase in cash held 597,289 934,363

Cash at the beginning of the financial year 23,811,652 22,877,289

Cash at the end of the financial year 24,408,941 23,811,652

The Cash Flow Statement should be read in conjunction with the accompanying notes.

2015 2014$ $

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1. OBJECTS OF THE ART GALLERY OF WESTERN AUSTRALIA FOUNDATION

The Art Gallery of Western Australia Foundation was established in 1989 following an amendment to the Art Gallery Act 1959, Section 28A, which provides:

“The objects of the foundation are –

(a) to attract and retain for the Art Gallery the continuing interest and financial support of the community at large and to encourage donations to maintain, improve and develop the State collection of works of art and the facilities and well-being of the Art Gallery; and

(b) to perform such other duties and exercise such other powers as are provided for in the rules.”

2. SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES AND POLICIES

(a) Basis of Accounting

In the Council Members’ opinion, the Foundation is not a reporting entity because there are no users dependent on general-purpose financial reports.

This is a special purpose financial report that has been prepared for the sole purpose of complying with the Council Members’ request to prepare and distribute a financial report and must not be used for any other purpose. The Council Members have determined that the accounting policies adopted are appropriate to meet their needs.

The financial report has been prepared in accordance with applicable Accounting Standards and Interpretations.

The financial report is prepared on the accrual basis of accounting in accordance with the historical cost convention. Unless otherwise stated, the accounting policies adopted are consistent with those of the previous year. Comparative information is reclassified where appropriate to enhance comparability.

(b) Accounting Policies

Membership pledges Donor pledges are recognised as membership pledges in the Income

and Expenditure Statement upon receipt.

Donated works of art The value of works of art donated to the Art Gallery contributes

towards membership of the Foundation. These donated works of art are recognised as contributions to the Art Gallery (see note 3) and do not constitute income to the Foundation.

Contributions to the Art Gallery/Commitments When the Foundation contributes funds towards the cost of acquiring

Art Gallery assets, the cost is expensed in the year that the asset is on hand. There were no commitments to purchase further works of art as at 30 June 2015.

Cash on deposit Cash includes deposits at call with financial institutions.

Cash deposits are held in a bank account which is administered by the Art Gallery of Western Australia. Payments made by the Art Gallery of Western Australia on behalf of the Foundation are recouped from cash balances on a regular basis.

(c) Accounts

All Art Gallery of Western Australia Foundation records and transactions are administered and maintained by the Art Gallery of Western Australia free of charge.

(d) Audit

From 2009, the Art Gallery of Western Australia Foundation financial statements will no longer be separately audited. Foundation transactions and balances are included in the Art Gallery of Western Australia’s financial statements and are separately disclosed as a Special Purpose Account. These financial statements are audited annually by the Office of the Auditor General.

3. CONTRIBUTIONS TO THE ART GALLERY

Acquisition funds are raised principally to fund the purchase of works of art by the Art Gallery. These are shown as a contribution to the Art Gallery in the year that commitment to fund the works of art occurs. The total contributions made to the Art Gallery since the inception of the Foundation are:

$

Contributions prior to 2011

Works of Art 2,972,431

Susan Norrie Catalogue 5,000

Scooter 3,075

Tom Malone Prize 80,000

Utopia Tour Exhibition Grant 98,000

Indigenous Trainee Assistant Curator Salary 95,880

South West Central Exhibition Grant 19,989

Family Program Pilot and Children’s Book Donation 338,200

3,612,575

2011 to 2014 Contributions

Works of Art

The TomorrowFund 2,470,434

Contemporary Art Group 39,235

The Historical Fund 745,200


Foundation Bequests 910,611

4,209,480

2015 Contributions

Works of Art

The TomorrowFund 463,452


Foundation Bequests 137,992

613,444

8,435,499

The Art Gallery of Western Australia Foundation Notes to and forming part of the Accounts for the year ended 30 June 2015

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4. CAPITAL FUNDS

The foundation capital has been divided into five funds depending on the purpose for which the funds are held.

The Acquisition Fund was established to provide funds for the Art Gallery to purchase works of art for the State Art Collection.

The Tomorrow Fund was established in May 2008 to provide a sustainable funding source for contemporary art works. This fund includes $12.5 million funding from the State Government with a pledge to provide an additional $2.5 million when the remaining portion of the $10 million pledged to the Foundation from corporate and private supporters has been received.

The Historic Fund supports the acquisition of historic Australian works of art.

The Living Centre Fund was established to raise funds to support the construction of a Living Centre and Sculpture Garden on the Art Gallery site.

The Contemporary Art Group was established to provide funds to purchase contemporary art works for the State Art Collection.

The Foundation Bequests fund was established to manage funds bequeathed to the Foundation to provide a lasting legacy to the State Art Collection.

The Exhibition Fund was established in 2015 to raise funds to support ongoing temporary exhibitions and support improved access to the visual arts

5. REMUNERATION OF FOUNDATION COUNCIL MEMBERS

The following persons were Council Members during the year ended 30 June 2015 and received the following remuneration for their services to the Art Gallery of Western Australia Foundation:

2015 2014

$ $

Lyn Beazley nil nil

John Bend nil nil

Andrea Bux nil nil

Stefano Carboni

Adrian Fini nil nil

Andrew Forrest nil nil

Sandra Honey nil nil

Nicholas Hasluck nil nil

Paul O'Connor nil nil

nil nil

6. EMPLOYEE ENTITLEMENTS

All staff of the Culture and Arts portfolio agencies, including the Art Gallery of Western Australia Foundation, are employees of the Department of Culture and the Arts. The Department of Culture and the Arts retains all liabilities in relation to employee benefits. Therefore, the Foundation has no liabilities in relation to employee entitlements.

7. TAXATION OF THE FOUNDATION

The Art Gallery of Western Australia Foundation is exempt from income tax under Subdivision 50-B of the Income Tax Assessment Act 1997.

Notes to and forming part of the Accounts for the year ended 30 June 2015 – continued

Documents

Art Gallery of Western Australia Foundation · Annual Financial Statements 2014-15 Art Gallery of Western Australia Foundation. 2 ... are a special purpose financial report that has